Types of housing managed by the sector

This information sheet is one of an Introducing regulation series which provide brief introductory information on housing regulation, the Registrar of Housing Agencies and the registered housing sector.

Rental properties

The focus of the Victorian registered housing sector is on providing rental housing at rent levels below private rental rate for people who:

  • cannot afford to rent housing at the market rate; and/or
  • have complex needs, which makeit difficult for them to attain and sustain housing in the private rental market.

This lower rent housing is known as social housing. The term is used in Victoria to cover both the community housing managed by the registered housing sector and public housing managed directly by the government.

A common application process for social housing was implemented in 2017. People seeking housing now apply to theVictorian Housing Register (VHR).

The VHR is divided into two sections –

  • Priority Access for applicants with a more urgent need to be housed or with special needs;and
  • Register of Interest for applicants that meeteligibility criteria but not assessed as having an urgent need.

Who is housed

The registered housing sector is very diverse and grew out of different programs that were established over the past thirty years. Consequently, the people who are housed are also very diverse with varying needs and requirements.

Tenants are also a mix of household groupings, including single adults, single parents with children, couples, and couples with children.

The sector provides housing for those on low incomes and with low asset ownership. Manyhouseholds are reliant upon pensions or benefits as their sole income. Upper limits for income and assets are set out in government guidelines.

Housing tenure

The three primary tenures represented in housing managed by the registered sector are long term, transitional and crisis.

1. Long term

Long-term accommodation covers the most diverse range of housing managed by the sector. While the accommodation options are frequently standalone houses and apartments intermingled with private housing, there are also some more specialised options, including:

(i) Rooming houses

Rooming houses are designed primarily for single adults. Although most of the community–managed rooming houses have been upgraded so that each resident has their own bathroom and kitchen, there are still a small number of traditional rooming houses where the residents share bathrooms and kitchens.

Rooming houses tend to house more men than women, although this is changing as the stock is upgraded.

Rooming houses used to be seen as short-term accommodation for people in need, such as people exiting the justice system or drug and alcohol facilities. However, many people now regard their rooming house as a long-term option. Rooming houses do not charge bonds and are therefore more accessible for people on low incomes with fewer assets than the private rental market.

The income and asset eligibility criteria for rooming houses is the same as for public housing. Most rooming house residents would fulfil the Priority Access criteria for social housing.

(ii) Co-operative housing

There are two main co-operative models in Victoria: the common equity rental co-operative and the rental housing co-operative. Although there are some differences between the two models, both are committed to the principle of members having a democratic say in the running of their co-operative, including tenant selection.

Generally the housing managed by a co-operative tends to be located in a particular suburb. They are generally standalone houses.

Co-operatives can house a wide range of people from ethno- and gender-specific through to families and older people. The tenants are a mix of those fulfilling the Priority Access criteria for social housing, and those meeting the Register of Interest criteria.

2. Transitional housing

A number of registered agencies manage transitional housing, whichprovides relatively short-term accommodation with access to support services for people who have experienced homelessness. It acts as a stepping stone to more permanent housing in public housing, community housing or the private market.

People accessing transitional housing are commonly fleeing domestic violence or have incomes too low to afford private rental accommodation. They, too, would often fulfil the Priority Access criteria for social housing.

3. Crisis accommodation

As the name suggests, crisis accommodation is for people without permanent housing and are homeless or at risk of homelessness. This is short-term accommodation such as women’s refuges, youth refuges and homelessness shelters.Some crisis accommodation is provided by the registered sector; most is provided by specialist providers who are not required to be registered.

Crisis accommodation is linked in with specialist support services to provide comprehensive services to assist people to move out of homelessness and into more permanent accommodation.

National Rental Affordability Scheme housing

Some registered agencies own and/or manage properties funded under the National Rental Affordability Scheme (NRAS).

These properties generally offer longer term tenure and cater for singles and families on higher incomes than those acceptable forsocial housing and are therefore generally categorised as affordable housing rather than social housing.

In return for receiving government operating subsidies over ten years, NRAS owners must charge a minimum of 20 per cent below the market rent, although many registered agencies charge less than this. NRAS tenants tend to be low to moderate wage earners.

National Disability Insurance Scheme housing

Some registered agencies also own and/or manage properties funded under the National Disability Insurance Scheme (NDIS). These properties tend to be Specialist Disability Accommodation (SDA)for people who require specialist housing solutions, including to assist with the delivery of supports that cater for their extreme functional impairment or very high support needs.

The NDIS can also fund support costs (such as Supported Independent Living) to enable an individual to live in a standard form of longer term housing with additional support they may need, for example with activities of daily living such as cooking or cleaning.